Bad News in the DEFI World



Aave is currently experiencing 100% utilization, with approximately $5 billion in liquidity being sucked out. The bad news is that depositors are currently having difficulty withdrawing funds.

They are currently facing significant liquidity pressure. Several core markets (including ETH, USDT, and USDC) have now reached 100% utilization, leaving many users struggling or even unable to withdraw their funds for the time being.

This is a ripple effect of yesterday's ~$290 million exploit on KelpDAO's rsETH.

As a result, Aave now faces approximately $200 million in bad debt in the wETH market.
Following the exploit, a large number of whales, including Justin Sun, MEXC, and others, immediately withdrew billions of dollars from the protocol.
Within hours, over $5.4 billion in ETH and other assets were exited, causing liquidity in core markets to rapidly dry up.
BAD-4.77%
IN-0.29%
AAVE0.16%
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